Here is how you can setup mplayer to use Central European encoding for subtitles (instead of default UTF-8):

Go to mplayer directory and edit the config file, located in mplayer subdirectory of mplayer (that will be \mplayer\mplayer\config), After the “font” line add:

subfont-encoding=iso-8859-2

While you are still there, you can add

fs=yes

to always have full screen when dropping a movie over mplayer’s icon.

Here is my mplayer config file:

vo=directx
double=yes
font=c:/windows/fonts/arial.ttf
subfont-encoding=iso-8859-2
autosync=100
framedrop=yes
quiet=yes
fs=yes

P.S. In theory, you can achieve this by replacing arial.ttf with arial-ce.ttf, just that I couldn’t manage to find arial-ce.ttf free on Internet. And it looks like arial.ttf already has the CE fonts (aka iso-8859-2) packed into it.